trakka wrote:
Yes, that's what I meant, Trance. What LVR did you borrow? If you put in 6%, that would mean you borrowed 94% to buy the first property.

What about Closing costs, I hear the average is 5% of the purchase price, so by these calculations your LVR should be 99, not 94, right???Also, if you tkae out a 100-106% loan the interest will…[Read more]

Keira wrote:
If you plan on turning it over quickly, it needs to be your PPOR from the day of settlement which means either living in it or having it vacant whilst doing work but NOT having tenants. If you put tenants in first you still get a CGT discount, for every day it was tenanted and you match that period of time living in it you get a…[Read more]

If you pay part of the principle off when you come to turning it into an IP you will have a low tax-deductable debt. You may wantto buy another PPOR then and you will then have a big debt on that which is non tax-deductable.You can get an offset facility which you park your money in,say you have a loan of 100K, and you have 10K in the offset, then…[Read more]

Richard, would a wrap like the one that you talk about be a good venture for a first timer in the property market??Coz a CoC return(of  16%) requires a certain % of deposit(so what LVR do you go for??)I'm going to buy a property in late 2009(first one) with a deposit between 25-28K, the property im looking for is around 200K with 5% closing costs…[Read more]

Qlds007 wrote:
If you wrap the propert from day 1 you are getting COC return of around 16%.

What sale % margin and % interest rate higher do you use to achieve this??Cheers,Chris

Thank you everyone for your posts. I realise it is constructive criticism, so i am not taking it personal.

You are true Kiera it is hard to get a foot in the door, but you are also correct in saying that we all want to suceed but not stoop to the level of fraud.

Maybe being eligible for the FHOG later if i don’t live in my IP sounds good. I will…[Read more]

Thanks Foundation. I’ll contact the office and see what happens.

It seems like what I am proposing is fraud, it doesn’t make me feel good that this is the truth. hmm, if they can’t catch me(small chance) then why not give it a go.

uh, i dont understand, i’m sure the ATO would take the money back, how can they not, would I be obliged to live…[Read more]

simbacat wrote:
Aaaah, a penny just dropped! I didn't realise that the $140k portion of the new mortgage for IP would not be tax deductible if it is then used towards PPOR. It is all getting a bit clearer for me now.

Thats if you refinance(and get 140K) and the proceeds go to paying off the PPOR.With refinancing the purpose of the funds is t…[Read more]

Ok, so house prices won't fly with growth forever above income increases,Will house prices increases stay (sort of) level with income increases.E.g. if income goes up 5% pa, so does house prices, also what are the actual house price increases??Chris.

Woah, Foundation(sorry don’t know your first name).
Your throwing lots of stuff at us and you are kinda scaring the s**t out of me.

I have also read your other thread here https://www.propertyinvesting.com/forums/property-investing/general-property/4322827

So what I get from what your saying is;
Rent rises depend on wage rises, so rent goes up…[Read more]

Masih wrote:
5 – Remember Law of 14. If the capital growth is 10% then rent will be 4%. If rent is 10% then capital growth will be 4%.

Where did you get this law from?? I've never heard of it before, have you got any info on it, it sounds good as I have been assuming in my calculations of capital growth 5.5% and rent 4.5%(total 10 instead of…[Read more]

tammy wrote:
Chris,Do you mean Wallsend on the west side of Newcaslte?Tammy

Yes, you are correct…. Is there anything wrong there???

Quote:
Hi Chris,If you've saved up some deposit and you think prices might be too high by the time you finish uni, why dont you look for something Off-The Plan with long completion date…say 2 or 3 years? That way you can get in early in the market and dont have to worry about paying off a mortgage while still studying. Parramatta is a great…[Read more]

Hye Masih,Well, i'm not ready to buy into the market yet, I am just finishing my first year of 3 at university and my gf is doing a long tafe course, we are saving like mad and at the completion of my degree(end of 2009) we should be able to jump in at properties around 200-250, but i'm worrying that I won't be able to get anything good for that…[Read more]

Masih wrote:
Besides, the more rate rises, the higher the rentals as most people wont be able to afford to a buy a house. So demand for rental properties will definitly go up.

Thats exactly what I think too. You will have more expenses but more income, balancing it out.The difference is the stall(or slow down) of rising prices. I will be…[Read more]

Hmm, propertypower, that is a good idea. As i would like to buy my first IP(in sydney aswell) around end 2009 – start2010 and i am worrying about size of depoist, if i can get in in time to not have missed out on alot of the uptrending of the market.I could get in even earlier, like with still half a year of uni left(mid2009) and do what you…[Read more]

Hmm, Stumunro you say that some areas over the next 2 year will show good growth, what regions(not subrurbs) do you think will take slightly longer(i would prefer western, cheaper,200-250K properties) to get some growth going, as i will not be in the property market in such a short time as you have mentioned.Chris.

Would I be able to get a copy of that article aswell Simon.Chris

Mortgage Hunter wrote:
As long as you don't live in the IP you can still get it later.  This changed in 2000 but many people still don't know.

Really??, thats my good news for today. Thank you very much Simon.P.S. Just an after thought, when the FHOG was introduced the prices of properties were much lower, as a result the FHOG made up a…[Read more]

Mortgage Hunter wrote:
Buying an IP does not stop you from getting the FHOG at a later time when you buy a home.

This is confusing. I've been thinking the other way.Ok, situation time;I buy an IP with my partner(both names on title of prop and loan), we dont get FHOG(as IP).Later we buy PPOR, with both names(blah,blah), do we get the FHOG??Does…[Read more]